ISO 44004:2021
(Main)Collaborative business relationship management — Guidelines for large organizations seeking collaboration with micro, small and medium-sized enterprises (MSMEs)
Collaborative business relationship management — Guidelines for large organizations seeking collaboration with micro, small and medium-sized enterprises (MSMEs)
This document gives guidance for large organizations seeking to engage micro, small and medium-sized enterprises (MSMEs) within their collaborative relationship programmes. It uses the 12 collaborative relationship management principles given in ISO 44001.
Management collaboratif des relations d'affaires — Lignes directrices pour les organisations cherchant à collaborer avec des micro, petites et moyennes entreprises (MPME)
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INTERNATIONAL ISO
STANDARD 44004
First edition
2021-10
Collaborative business relationship
management — Guidelines for large
organizations seeking collaboration
with micro, small and medium-sized
enterprises (MSMEs)
Management collaboratif des relations d'affaires — Lignes directrices
pour les organisations cherchant à collaborer avec des micro, petites
et moyennes entreprises (MPME)
Reference number
ISO 44004:2021(E)
© ISO 2021
---------------------- Page: 1 ----------------------
ISO 44004:2021(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2021
All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may
be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting on
the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address below
or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii
© ISO 2021 – All rights reserved
---------------------- Page: 2 ----------------------
ISO 44004:2021(E)
Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Context . 1
5 Implementation . . 2
5.1 Relationship management . 2
5.2 Visions and values . 2
5.3 Business objectives . . 3
5.4 Collaborative leadership . 3
5.5 Governance and processes . 4
5.6 Collaborative competence and behaviour . 5
5.7 Trust and commitment to mutual benefit . 5
5.8 Value creation . 5
5.9 Information and knowledge sharing . 6
5.10 Risk management . 6
5.11 Relationship measurement and optimization . 7
5.12 Exit strategy. 7
Bibliography . 9
iii
© ISO 2021 – All rights reserved
---------------------- Page: 3 ----------------------
ISO 44004:2021(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www.iso.org/patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO’s adherence to
the World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see
www.iso.org/iso/foreword.html.
This document was prepared by Technical Committee ISO/TC 286, Collaborative business relationship
management.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www.iso.org/members.html.
iv
© ISO 2021 – All rights reserved
---------------------- Page: 4 ----------------------
ISO 44004:2021(E)
Introduction
The aim of this document is to establish guidelines for how large organizations can adjust their approach
when collaborating with MSMEs. It is based on the principles for successful collaborative business
relationship management described in ISO/TR 44000. A similar document, ISO 44003, provides
guidelines to MSMEs on how to adopt the same principles. When read in conjunction, ISO/TR 44004
and ISO 44003 facilitate an understanding of how to apply the principles for successful collaboration
from both a large company working with MSMEs and an MSME perspective.
v
© ISO 2021 – All rights reserved
---------------------- Page: 5 ----------------------
INTERNATIONAL STANDARD ISO 44004:2021(E)
Collaborative business relationship management —
Guidelines for large organizations seeking collaboration
with micro, small and medium-sized enterprises (MSMEs)
1 Scope
This document gives guidance for large organizations seeking to engage micro, small and medium-
sized enterprises (MSMEs) within their collaborative relationship programmes.
It uses the 12 collaborative relationship management principles given in ISO 44001.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
No terms and definitions are listed in this document.
ISO and IEC maintain terminology databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at https:// www .electropedia .org/
4 Context
The recommendations in this document are based on the premise and experience that many large
organizations tend to have evolved requirements, processes, templates and systems in place that are
optimized to work within their own business while working primarily for and together with other large
organizations. In some cases, these processes and systems give rise to an increased focus on internal
requirements, causing the organization to be perceived as self-centred on compliance rather than
interested in identifying and paying attention to the needs of partners, especially MSMEs, which are
smaller and tend to have less need for complex governance structures.
MSMEs typically bring more agility and flexibility to a collaborative relationship. They are also likely to
have more limited resources and structures when it comes to management processes. They are often
overwhelmed by the requirements imposed through the processes and systems of larger organizations.
Large organizations are likely to have processes and tools for collaboration, but they are not designed
to bring out the best performance of MSMEs in collaborative relationships. Often where large
organizations have taken the lead in the process and governance of collaboration initiatives with
MSMEs, one-size-fits-all processes and requirements have weighed down their smaller partners, who
have tried to conform to a way of working that is unnatural to them. When this mismatch occurs, all
parties miss out on the intended and expected value return of the collaboration, and real financial,
resourcing and efficiency barriers occur for the MSMEs.
Large organizations experiencing some or all of the issues described above are likely to benefit from
learning to pragmatically adjust their way of working to more MSME-friendly terms and to achieve
better alignment, in line with the recommendations in this document. Consequently, this leads to
greater value from the relationship and a more positive experience for the MSME when working with
the large organization.
1
© ISO 2021 – All rights reserved
---------------------- Page: 6 ----------------------
ISO 44004:2021(E)
5 Implementation
5.1 Relationship management
A structured process to manage and sustain collaborative relationships underpins their success. To
be sustainable over time, a collaborative relationship needs to be based on systems and processes,
whether internal or jointly developed, together with a continued focus on monitoring and developing
competence and behaviours. Collaborative relationships that are based solely on personal relationships,
although important, are vulnerable since personnel can change over time.
When larger and more complex organizations evaluate the robustness of small company processes,
they should be aware of the need of the smaller organizations for less complex processes. It is the lean
management approach that allows smaller organizations to be more dynamic, creative and flexible.
A policy that acknowledges the need for scaling the relationship approach to be fit for purpose with
smaller organizations can be a key enabler for realizing the value of collaboration initiatives between
large organizations and MSMEs.
Complex processes, systems and organizational structures of larger organizations can be difficult
for any partner to navigate and are likely to be particularly complex for smaller organizations. An
MSME relationship manager can act as direction finder for smaller organizations to navigate internal
structures and support engagement.
For larger organizations used to working in, with and for other large organizations, internal processes
are often set up to operate together with single entities. Among MSMEs, however, it is not uncommon to
form clusters or ecosystems to deliver as single but connected entities. This can be challenging for larger
organizations and can cause them to miss out on valuable collaborative relationship opportunities. It
requires top level support and processes to ensure appropriate risk management for all parties.
The large organization should:
a) consider establishing a policy for encouraging engagement with smaller organizations;
b) consider appointing a MSME relationship manager with appropriate accountability to specifically
support smaller organizations as appropriate;
c) establish a platform to address the engagement process for all partners;
NOTE This can be done by producing a joint relationship management plan in which the partners
mutually define how they will work together to achieve single and joint objectives in the relationship. It also
helps each organization understand the structure and workings of the other.
d) ensure, if appropriate, that it has the top-level support along with processes and capabilities to
work with MSME clusters or ecosystems of MSMEs.
5.2 Visions and values
The visions and values of organizations wanting to work together have an impact on the effectiveness
of the collaboration. Operating a collaborative business relationship inevitably involves the reputation,
ethics and culture of partner organizations. As each party considers the value of a collaborative
relationship, the profile of the organization and potential compatibility with partners is a key factor in
establishing and aligning its capabilities and joint performance.
The visions and values of larger organizations can have significant internal and external implications
which can result in reputational risks when engaging with third parties. As a result, they can have
extensive requirements to ensure compliance to their policies that smaller organizations do not have
the resources or systems in place to accommodate. Larger organizations that operate multiple and often
complex compliance requirements can benefit from adopting a more flexible approach when dealing
with smaller organizations.
2
© ISO 2021 – All rights reserved
---------------------- Page: 7 ----------------------
ISO 44004:2021(E)
MSMEs do not always have high profile issues to consider. However, they can have a focus and often
personal commitments on corresponding visions and values that can be a key performance driver in the
relationship. Therefore, larger organizations benefit from including visions and values when evaluating
smaller organizations. For example, standardized partner evaluation criteria based largely on size and
processes can disqualify a smaller organization with great value potential that works strongly aligned
with the larger organization’s vision and values. Clarified alignment and familiarity with the visions
and values of its MSME partners strengthens the relationship. Lack of alignment can pose issues that
need to be mutually addressed.
The large organization should:
a) ensure partner selection criteria take into greater account the visions and values of MSMEs;
b) consider accepting a self-declaration where appropriate to address compliance;
c) consider using facilitated discussion around visions and values to identify influences, share
perceptions and ensure effective engagement.
5.3 Business objectives
Only when drivers for collaboration support the business objectives of each partner organization,
large or small, does a collaborative relationship make sense. Collaborative relationships can enhance
competitive advantage; however, such approaches require effort and resources to achieve the desired
goals and objectives of each of the partners. As a result, there should be clearly defined business
drivers where such investment is validated, warranted and sustainable. Implementing a collaborative
relationship can require individuals and functions within the organizations to undertake changes to
their normal operating practices. These changes need to be ratified against a robust business case
where the success of the collaboration is fundamental to the overall success of the organizations, and
is effectively communicated across all internal functions to ensure consistency. Ensuring that each
partner’s objectives can be achieved through the relationship supports continued effective engagement
at both organizational and individual levels to sustain mutual benefit.
It is a key task for larger organizations to ensure they fully understand what smaller organizations hope
to achieve and how this can benefit the collaboration. When engaging with smaller organizations, it
should be recognized that their ability and resources can be constrained. By working together, a larger
organization can strengthen the relationship and its outcomes by supporting MSMEs. For example,
rather than solely focusing on its own desired outcomes, the wide reach and resources of the large
organization can complement the capabilities of smaller organizations to achieve joint success.
The large organization should:
a) learn about the objectives o
...
INTERNATIONAL ISO
STANDARD 44004
First edition
Collaborative business relationship
management — Guidelines for
large organizations seeking
collaboration with micro, small and
medium-sized enterprises (MSMEs)
PROOF/ÉPREUVE
Reference number
ISO 44004:2021(E)
©
ISO 2021
---------------------- Page: 1 ----------------------
ISO 44004:2021(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2021
All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may
be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting
on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address
below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii PROOF/ÉPREUVE © ISO 2021 – All rights reserved
---------------------- Page: 2 ----------------------
ISO 44004:2021(E)
Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Context . 1
5 Implementation . 2
5.1 Relationship management . 2
5.2 Visions and values . 2
5.3 Business objectives . 3
5.4 Collaborative leadership . 3
5.5 Governance and processes . 4
5.6 Collaborative competence and behaviour . 5
5.7 Trust and commitment to mutual benefit . 5
5.8 Value creation . 5
5.9 Information and knowledge sharing . 6
5.10 Risk management . 6
5.11 Relationship measurement and optimization. 7
5.12 Exit strategy . 7
Bibliography . 9
© ISO 2021 – All rights reserved PROOF/ÉPREUVE iii
---------------------- Page: 3 ----------------------
ISO 44004:2021(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www .iso .org/ patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO’s adherence to the
World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www .iso .org/
iso/ foreword .html.
This document was prepared by Technical Committee ISO/TC 286, Collaborative business relationship
management.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www .iso .org/ members .html.
iv PROOF/ÉPREUVE © ISO 2021 – All rights reserved
---------------------- Page: 4 ----------------------
ISO 44004:2021(E)
Introduction
The aim of this document is to establish guidelines for how large organizations can adjust their approach
when collaborating with MSMEs. It is based on the principles for successful collaborative business
relationship management described in ISO/TR 44000. A similar document, ISO 44003, provides
guidelines to MSMEs on how to adopt the same principles. When read in conjunction, ISO/TR 44004
and ISO 44003 facilitate an understanding of how to apply the principles for successful collaboration
from both a large company working with MSMEs and an MSME perspective.
© ISO 2021 – All rights reserved PROOF/ÉPREUVE v
---------------------- Page: 5 ----------------------
INTERNATIONAL STANDARD ISO 44004:2021(E)
Collaborative business relationship management —
Guidelines for large organizations seeking collaboration
with micro, small and medium-sized enterprises (MSMEs)
1 Scope
This document gives guidance for large organizations seeking to engage micro, small and medium-
sized enterprises (MSMEs) within their collaborative relationship programmes.
It uses the 12 collaborative relationship management principles given in ISO 44001.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
No terms and definitions are listed in this document.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https:// www. iso. org/obp
— IEC Electropedia: available at https:// www.electropedia . org/
4 Context
The recommendations in this document are based on the premise and experience that many large
organizations tend to have evolved requirements, processes, templates and systems in place that are
optimized to work within their own business while working primarily for and together with other large
organizations. In some cases, these processes and systems give rise to an increased focus on internal
requirements, causing the organization to be perceived as self-centred on compliance rather than
interested in identifying and paying attention to the needs of partners, especially MSMEs, which are
smaller and tend to have less need for complex governance structures.
MSMEs typically bring more agility and flexibility to a collaborative relationship. They are also likely to
have more limited resources and structures when it comes to management processes. They are often
overwhelmed by the requirements imposed through the processes and systems of larger organizations.
Large organizations are likely to have processes and tools for collaboration, but they are not designed to
bring out the best performance of MSMEs in collaborative relationships. Often where large
organizations have taken the lead in the process and governance of collaboration initiatives with
MSMEs, one-size-fits-all processes and requirements have weighed down their smaller partners, who
have tried to conform to a way of working that is unnatural to them. When this mismatch occurs, all
parties miss out on the intended and expected value return of the collaboration, and real financial,
resourcing and efficiency barriers occur for the MSMEs.
Large organizations experiencing some or all of the issues described above are likely to benefit from
learning to pragmatically adjust their way of working to more MSME-friendly terms and to achieve
better alignment, in line with the recommendations in this document. Consequently, this leads to
greater value from the relationship and a more positive experience for the MSME when working with
the large organization.
© ISO 2021 – All rights reserved PROOF/ÉPREUVE 1
---------------------- Page: 6 ----------------------
ISO 44004:2021(E)
5 Implementation
5.1 Relationship management
A structured process to manage and sustain collaborative relationships underpins their success. To
be sustainable over time, a collaborative relationship needs to be based on systems and processes,
whether internal or jointly developed, together with a continued focus on monitoring and developing
competence and behaviours. Collaborative relationships that are based solely on personal relationships,
although important, are vulnerable since personnel can change over time.
When larger and more complex organizations evaluate the robustness of small company processes,
they should be aware of the need of the smaller organizations for less complex processes. It is the lean
management approach that allows smaller organizations to be more dynamic, creative and flexible.
A policy that acknowledges the need for scaling the relationship approach to be fit for purpose with
smaller organizations can be a key enabler for realizing the value of collaboration initiatives between
large organizations and MSMEs.
Complex processes, systems and organizational structures of larger organizations can be difficult
for any partner to navigate and are likely to be particularly complex for smaller organizations. An
MSME relationship manager can act as direction finder for smaller organizations to navigate internal
structures and support engagement.
For larger organizations used to working in, with and for other large organizations, internal processes
are often set up to operate together with single entities. Among MSMEs, however, it is not uncommon to
form clusters or ecosystems to deliver as single but connected entities. This can be challenging for larger
organizations and can cause them to miss out on valuable collaborative relationship opportunities. It
requires top level support and processes to ensure appropriate risk management for all parties.
The large organization should:
a) consider establishing a policy for encouraging engagement with smaller organizations;
b) consider appointing a MSME relationship manager with appropriate accountability to specifically
support smaller organizations as appropriate;
c) establish a platform to address the engagement process for all partners;
NOTE This can be done by producing a joint relationship management plan in which the partners
mutually define how they will work together to achieve single and joint objectives in the relationship. It also
helps each organization understand the structure and workings of the other.
d) ensure, if appropriate, that it has the top-level support along with processes and capabilities to
work with MSME clusters or ecosystems of MSMEs.
5.2 Visions and values
The visions and values of organizations wanting to work together have an impact on the effectiveness
of the collaboration. Operating a collaborative business relationship inevitably involves the reputation,
ethics and culture of partner organizations. As each party considers the value of a collaborative
relationship, the profile of the organization and potential compatibility with partners is a key factor in
establishing and aligning its capabilities and joint performance.
The visions and values of larger organizations can have significant internal and external implications
which can result in reputational risks when engaging with third parties. As a result, they can have
extensive requirements to ensure compliance to their policies that smaller organizations do not have
the resources or systems in place to accommodate. Larger organizations that operate multiple and often
complex compliance requirements can benefit from adopting a more flexible approach when dealing
with smaller organizations.
2 PROOF/ÉPREUVE © ISO 2021 – All rights reserved
---------------------- Page: 7 ----------------------
ISO 44004:2021(E)
MSMEs do not always have high profile issues to consider. However, they can have a focus and often
personal commitments on corresponding visions and values that can be a key performance driver in the
relationship. Therefore, larger organizations benefit from including visions and values when evaluating
smaller organizations. For example, standardized partner evaluation criteria based largely on size and
processes can disqualify a smaller organization with great value potential that works strongly aligned
with the larger organization’s vision and values. Clarified alignment and familiarity with the visions
and values of its MSME partners strengthens the relationship. Lack of alignment can pose issues that
need to be mutually addressed.
The large organization should:
a) ensure partner selection criteria take into greater account the visions and values of MSMEs;
b) consider accepting a self-declaration where appropriate to address compliance;
c) consider using facilitated discussion around visions and values to identify influences, share
perceptions and ensure effective engagement.
5.3 Business objectives
Only when drivers for collaboration support the business objectives of each partner organization,
large or small, does a collaborative relationship make sense. Collaborative relationships can enhance
competitive advantage; however, such approaches require effort and resources to achieve the desired
goals and objectives of each of the partners. As a result, there should be clearly defined business
drivers where such investment is validated, warranted and sustainable. Implementing a collaborative
relationship can require individuals and functions within the organizations to undertake changes to
their normal operating practices. These changes need to be ratified against a robust business case
where the success of the collaboration is fundamental to the overall success of the organizations, and
is effectively communicated across all internal functions to ensure consistency. Ensuring that each
partner’s objectives can be achieved through the relationship supports continued effective engagement
at both organizational and individual levels to sustain mutual benefit.
It is a key task for larger organizations to ensure they fully understand what smaller organizations hope
to achieve and how this can benefit the collaboration. When engaging with smaller organizations, it
should be recognized that their ability and resources can be constrained. By working together, a larger
organization can strengthen the relationship and its outcomes by supporting MSMEs. For example,
rather than solely focusing on its own desired outcomes, the wide reach and resources of the large
organization can complement the capabilities of smaller organizations to achieve joint success.
The large organization should:
a) learn about the objectives of the MSME partner in order to identify points of additional value to the
objectives
...
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